What Happens to Your Options When a Stock Gets Acquired?

Ever held options in a stock that got acquired and wondered what the hell happens next?

We're living through exactly that scenario right now with Sandstorm Gold $SAND, which was acquired by Royal Gold $RGLD. We were long January $12 calls when the deal was announced, and let me tell you—the confusion this introduced was real.

What happens to the options? Do they just disappear? Do they convert to something else? Can you still trade them? What about the strike prices?

These are the questions flooding my inbox, and honestly, it's the kind of monkey business that makes options trading feel unnecessarily complicated.

Today's Live Options Jam Session is all about demystifying this mess.

I'll walk through where our $SAND position stands now, what actually happens mechanically when options are involved in a takeover, and most importantly—what I'm doing with the position going forward.

This isn't just academic. Understanding how acquisitions affect options positions is critical knowledge that every options trader needs. Because it will happen to you eventually, and when it does, you don't want to be caught flat-footed trying to figure it out in real time.

Beyond the takeover discussion, we've also got a mixed bag of portfolio updates to cover. Some profitable exits worth celebrating. Some profit-taking on positions that hit targets. And yes, a few stop-outs that remind us risk management never takes a day off.

The reality of active options trading is that you're constantly juggling multiple scenarios across different positions. Some work beautifully. Some work okay. Some don't work at all. Today we'll examine all of it.

Join me at 3pm ET for the Live Options Jam Session. Let's figure out this takeover situation together and get caught up on everything else happening in the portfolio: